Wall Street Today | As Dow sinks over 1,000 points, signs of panic-selling emerge

Moomoo Recap US wrote a column · May 6, 2022 08:54

Wall Street Today | As Dow sinks over 1,000 points, signs of panic-selling emerge

MACRO

As Dow sinks over 1,000 points, signs of panic-selling emerge in the stock market

Panic-like behavior was starting to set in on Wall Street on Thursday, at least from a technical perspective, as the Dow industrials shed all of the previous day's gain, and then some.

Trading in New York Stock Exchange-listed stocks at midday Thursday exhibited panic-like-selling action as bullish investors suffered a powerful reversal of fortune that appeared to be gathering steam in the wake of the Fed's early-May policy meeting, adding to a bruising stretch for buyers, sparked by concerns about rates.

Bond slide intensifies, rattling other markets

A new burst of selling in bonds pushed the 10-year Treasury yield well above 3% Thursday, a day after Federal Reserve Chairman Jerome Powell had seemed to calm markets by playing down the chances of a supersize interest-rate increase in the coming months.
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SECTORS

Search for yield pushes investors into dividend-paying stocks

Investors seeking shelter from volatility are turning to a part of the markets that had largely been overlooked last year: dividend-paying stocks.

Shares of companies paying big dividends to investors have trounced practically everything else this year. They took a hit Thursday as the broader market tumbled, but have held on to their lead for 2022. The iShares Core High Dividend exchange-traded fund, which tracks 75 such stocks, is up 3.9% this year. That puts the fund far ahead of the S&P 500, which is down 13% in 2022.
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COMPANIES

Elon Musk gets $7 billion in fresh financing for Twitter deal

Elon Musk has assembled a group of investors including a Saudi prince, Larry Ellison and a bitcoin exchange to pony up more than $7 billion to back his bid to buy $Twitter(TWTR.US)$.

$Tesla(TSLA.US)$'s chief executive has lined up about $7.14 billion from 19 investors, a roster of big-money backers whose investment effectively reduces the personal risk Mr. Musk has to take to close the $44 billion deal for the social-media company.
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FDA limits authorized use of J&J's Covid-19 vaccine

The Food and Drug Administration limited the use of the Covid-19 vaccine from $Johnson & Johnson(JNJ.US)$ after reviewing the risk of life-threatening blood clots.

The agency said Thursday that the J&J shot's authorization was now only for adults for whom other shots aren't available or medically appropriate, or who won't take another vaccine.
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EV startup Lucid to raise vehicle prices, even as losses narrow

Electric car maker $Lucid(LCID.US)$ reported narrower losses in the first quarter of 2022, and said it would increase vehicle prices starting in June, citing a changing environment from when it first set pricing in September 2020.

Lucid said Thursday that it recorded a net loss of $81.3 million in the January-to-March period, compared with a $2.9 billion loss in the same year-ago period.
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Facebook deliberately caused havoc in Australia to influence new law, whistleblowers say

Last year when Facebook blocked news in Australia in response to potential legislation making platforms pay publishers for content, it also took down the pages of Australian hospitals, emergency services and charities. It publicly called the resulting chaos "inadvertent."
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Virgin Galactic beats first-quarter revenue estimates, falls short on earnings per share

Virgin Galactic reported a first-quarter net loss of $93 million, which was improved from a net loss of $130 million year-over-year. The company reported an adjusted EBITDA loss of $77 million, which was worse than a loss of $56 million in the prior year's quarter.

Block stock gains despite earnings miss for Square's parent company

$Block (SQ.US)$ fell short of revenue and earnings expectations for its latest quarter, but shares of the payment-technology company formerly known as Square were headed higher in Thursday's aftermarket trading.

The company reported a first-quarter net loss of $204 million, or 38 cents a share, whereas it posted net income of $39.0 million, or 8 cents a share, in the year-earlier quarter.

Source: Bloomberg, WSJ

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